The medical technology investment space is a pretty small ecosystem, according to medtech venture capitalist Maria Berkman.
“The number of venture funds that exclusively focus on medtech is relatively limited. There are probably less than 100 funds,” she declared.
Berkman — who serves as head of medtech at Broadview Ventures and managing director at Longview Ventures — made this statement last week at the Heart Rhythm Society’s HRX conference in Atlanta.
During a fireside chat with Jennifer N. Avari Silva — a pediatric cardiology professor at Washington University in St. Louis and co-founder of electrophysiology startup SentiAR — Berkman shared three more insights into what some may consider a niche investment space.
Medtech VCs are a passionate bunch
The number of medtech investors out there may not be very high, but Berkman argued that these investors are an incredibly dedicated group.
“We always say that there are far easier ways to make money than medtech VC. Innovation takes a very long time, and you have to be very patient with your time and your capital,” she explained.
She also pointed out that medtech VCs are often investing in technologies that aim to treat “the sickest of the sick” patients.
Because of this, medtech investors often celebrate the clinical wins just as much as the financial wins, Berkman noted.
“When you hear medtech VCs bragging, it is often about a pivotal trial that was successful or a product that got approved and became the standard of care — not the multiple that we made on that investment,” she remarked.
Don’t confuse medtech VCs with tech VCs
The motto “move fast and break things” has often been used to describe the innovation strategy popularized by Mark Zuckerberg and other Silicon Valley tech entrepreneurs over the past two decades. It’s catchy, but it doesn’t quite apply to the medtech investment space, Berkman said.
“We can’t break things because we don’t work with things. We work with patients,” she declared.
Medtech investors have to approach risk in a more measured manner than their counterparts who invest in the pure tech space, Berkman noted.
Success will take a long time
On average, it takes about 12 to 20 years for a medtech startup to get its product approved and start generating revenue, Berkman said.
She highlighted Edwards Lifesciences’ recently FDA-approved Evoque tricuspid valve replacement system as one of the biggest success stories in her portfolio.
Berkman noted that her venture fund first invested in the product in 2009, with its approval only occurring in February of this year.
Photo: Abscent84, Getty Images
Editor’s note: This story is based on discussions at HRX, a conference in Atlanta that was hosted by the Heart Rhythm Society. MedCity News Senior Reporter Katie Adams was invited to attend and speak at the conference, and all her travel and related expenses were covered by Heart Rhythm Society. However, company officials had no input in editorial coverage.
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